Business
Rocky Mountain Chocolate Factory, Inc. Reports First Nine Months Of Fiscal Year 2020 Operating Results
DURANGO, CO / ACCESSWIRE / January 13, 2020 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the "Company") today reported its operating results for
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, CO / ACCESSWIRE / January 13, 2020 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the \"Company\") today reported its operating results for the three and nine months ended November 30, 2019. The Company franchises and operates gourmet chocolate and confection stores and self-serve frozen yogurt cafés, and manufactures an extensive line of premium chocolates and other confectionery products.THIRD QUARTER HIGHLIGHTS On December 20, 2019, the Company and Edible Arrangements®, LLC (\"EA\") entered into a long-term strategic alliance whereby the Company will become the exclusive provider of certain branded chocolate products to EA, its affiliates and its franchisees. The strategic alliance represents the culmination of the Company's exploration of its strategic alternatives, as announced in May 2019.Total revenue decreased 11.6 percent to $7.9 million during the three months ended November 30, 2019 compared to $8.9 million during the three months ended November 30, 2018.Same-store pounds of product purchased from the Company's factory by franchisees and co-branded licensees decreased 3.6 percent during the three months ended November 30, 2019 compared to the three months ended November 30, 2018.A net loss of $(72,000), or $(0.01) per basic and diluted share was realized in the three months ended November 30, 2019 compared to net income of $525,000, or $0.09 per basic share and diluted share realized in the three months ended November 30, 2018.An operating loss of $(98,000) was realized in the three months ended November 30, 2019 compared to operating income of $678,000 during the three months ended November 30, 2018.Adjusted EBITDA (a non-GAAP financial measure defined later in this release) increased 15.0 percent to $1.4 million in the three months ended November 30, 2019 compared to $1.2 million in the three months ended November 30, 2018.Factory sales decreased 15.7 percent during the three months ended November 30, 2019 compared to the three months ended November 30, 2018, primarily due to a 58.0 percent decrease in shipments of product to customers outside the Company's network of franchise retail locations partially offset by a 3.8 percent increase in purchases by the Company's network of franchised and licensed stores. The decrease in shipments of product to customers outside the Company's network of franchis...